Alibaba Latest Earnings: Net Profit Drops over 60% YoY, AI Revenue Sees Triple-Digit Growth

On March 19, Alibaba Group released its Q3 FY2026 earnings report (for the three months ended December 31, 2025). The results showed group revenue reached RMB 284.843 billion, representing a 9% year-on-year increase after adjusting for the disposal of Intime and Gaoxin Retail. Adjusted net profit stood at RMB 16.71 billion, down 67% year-on-year. Alibaba attributed the decline in overall profitability primarily to investments in instant retail, user experience, and technology. During the reporting period, Alibaba Cloud's revenue growth accelerated to 36%, with AI-related product revenue achieving triple-digit growth for the tenth consecutive quarter. The group plans to achieve annual revenue exceeding $100 billion from its cloud and AI businesses, including MaaS, within the next five years.